Analyst: Bitcoin Closer to Its “Long-Term Bottom”

January 8, 2019

Many digital currencies continue to climb up while Bitcoin has now gone beyond the $4,000 mark after the market surge on January 5. The market’s ability to sustain this upward trend is crucial to overturn the current crypto bear market.

The last few months have been particularly brutal for the markets with many digital currencies seeing all-time lows in 2018. Despite this, a well-known analyst believes that Bitcoin is close to reaching its long-standing bottom.

In a January 3 report by Bloomberg, the GTI Vera Convergence Divergence meter shows that Bitcoin is now enjoying its longest purchasing run during the last six months. If the trend continues, Bitcoin can experience a gradual price recovery.

EToro senior market analyst Mati Greenspan expresses his opinion on the likelihood of Bitcoin trading near its “long-term bottom,” stating that its current price is now terribly much closer to the bottom than its all-time high. Greenspan asserts:

“Usually the best thing to do is to buy low and sell high. So if we are going by technical analysis we can very easily see on the chart that we are much closer to the bottom than we are to the top.”

He further says that the industry’s current rise signifies that the crypto markets are about to witness “good things.” Greenspan adds:

“I’m seeing an industry that is growing at a very rapid pace right now where we see companies that are involved in Bitcoin and blockchain hiring at a rapid rate. We see new projects coming online. We see all kind of indication that people are getting more and more involved in the market.”

Meanwhile, Bloomberg analyst Mike McGlone states that the length of Bitcoin’s climb will tell if Bitcoin remains in the throes of a long-term bear market. McGlone elaborates by saying:

“The reduction of that selling is a good reason for the bounce. Now is about the duration of the bounce before resuming what is likely a longer-term bear market.”

As of press time, BTC is currently trading up 4.3 percent at $4,040. So far, the $4,000 mark serves as Bitcoin’s level of resistance, which suggests that in the absence of notable buying streak it will have a difficult time to remain above the price level for a longer time period.

As for Ethereum, its price is now at $160, up 1.2 percent. However, it has failed to remain above the $160 level for an extended period.